Preventing Waste, Fraud, and Abuse in TANF Act
Officially: “Preventing Waste, Fraud, and Abuse in TANF Act” Read the full text
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1Short title
This section would let the Act be called the Preventing Waste, Fraud, and Abuse in TANF Act.
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1. Short title This Act may be cited as the Preventing Waste, Fraud, and Abuse in TANF Act .
2Strengthening program integrity through improper payments review
This section would apply the federal Payment Integrity Information Act of 2019 to states that run the Temporary Assistance for Needy Families (TANF) program under part A of title IV of the Social Security Act, treating each state the same way that law treats a federal agency. It would also require the Secretary of Health and Human Services, within 1 year after this Act becomes law, to submit a written report to Congress that lays out a plan to reduce or eliminate improper payments made by states under the TANF program within 10 years.
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2. Strengthening program integrity through improper payments review (a) In general Section 404 of the Social Security Act ( 42 U.S.C. 604 ) is amended by adding at the end the following: (l) Applicability of payment integrity law The Payment Integrity Information Act of 2019 shall apply to a State in respect of the State program funded under this part in the same manner in which such Act applies to a Federal agency. . (b) Report to Congress Within 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Congress a written report that contains a plan to reduce or eliminate improper payments made by States under part A of title IV of the Social Security Act within 10 years.
3Targeting funds to families in need
This section would require a state that receives a TANF grant under section 403(a)(1) of the Social Security Act to use that grant only to provide assistance or services to a family whose income is less than twice the federal poverty guidelines. Those guidelines are the ones updated periodically in the Federal Register under section 673(2) of the Omnibus Budget Reconciliation Act of 1981.
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3. Targeting funds to families in need Section 404 of the Social Security Act ( 42 U.S.C. 604 ) is further amended by adding at the end the following: (m) Establishing a threshold for families in need A State to which a grant is made under section 403(a)(1) shall use the grant only to provide assistance or services to a family whose income is less than twice the poverty guidelines updated periodically in the Federal Register under section 673(2) of the Omnibus Budget Reconciliation Act of 1981 ( 42 U.S.C. 9902(2) ). .
4Deadlines for the obligation and expenditure of funds
This section would replace the existing rule on how quickly states must use their TANF funds with a new one. Under the new rule, a state that is paid funds under section 403(a)(1) for a fiscal year, after this subsection's effective date, would have to obligate (commit) those funds by the end of the next fiscal year and spend them by the end of the fiscal year after that, unless the exception below applies. As an exception, a state could reserve up to 15 percent of a given year's funds for future use in its TANF program. The total amount a state holds in reserve under this exception could not exceed 50 percent of the total funds paid to the state under section 403(a)(1) for the immediately preceding fiscal year. A state that intends to reserve funds this way would have to notify the Secretary of Health and Human Services of that intention by the end of the period during which the funds would otherwise have to be obligated under the general rule.
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4. Deadlines for the obligation and expenditure of funds Section 404(e) of the Social Security Act ( 42 U.S.C. 604(e) ) is amended to read as follows: (e) Deadlines for obligation and expenditure of funds by States (1) In general Except as provided in paragraph (2), a State to which funds are paid, after the effective date of this subsection, under section 403(a)(1) for a fiscal year shall obligate the funds not later than the end of the succeeding fiscal year, and shall expend the funds not later than the end of the 2nd succeeding fiscal year. (2) Exception for limited amount of funds set aside for future use (A) In general Notwithstanding paragraph (1) of this subsection, a State to which funds are paid under section 403(a)(1), after the effective date of this subsection, for a fiscal year may reserve not more than 15 percent of the funds for future use in the State program funded under this part, subject to subparagraph (B) of this paragraph. (B) Limitation The total amount held in reserve by a State under subparagraph (A) of this paragraph shall not exceed an amount equal to 50 percent of the total amount paid to the State under section 403(a)(1) for the then preceding fiscal year. (C) Notice of intent to reserve funds A State that intends to reserve funds under subparagraph (A) shall notify the Secretary of the intention not later than the end of the period in which the funds are available for obligation without regard to subparagraph (A) of this paragraph. .
5Prohibition on State diversion of Federal funds to replace State spending
This section would require a state to use the federal TANF funds it receives only to add to (supplement) the state and local funding that would otherwise support TANF-assisted programs, and not to replace (supplant) that state or local funding. It would also require the state's chief executive officer to certify that the funds provided to the state will not be used to replace state or non-federal funds for services and activities that support the program's purposes.
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5. Prohibition on State diversion of Federal funds to replace State spending (a) In general Section 404 of the Social Security Act ( 42 U.S.C. 604 ) is further amended by adding at the end the following: (n) Limitation on use of Federal funds to replace State general revenue funds A State shall use Federal funds received under this part only to supplement funds that, in the absence of the Federal funds, would be made available from State and local sources for programs assisted under this part, and not to supplant the funds. . (b) State certification Section 402(a) of such Act ( 42 U.S.C. 602(a) ) is amended by adding at the end the following: (9) Certification of State supplementation A certification by the chief executive officer of the State that the funds provided to the State under this part will not be used to supplant State or non-Federal funds for services and activities that promote the purposes of this part. .
6Effective date
This section would make all of the changes made by this Act take effect on October 1, 2027.
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6. Effective date The amendments made by this Act shall take effect on October 1, 2027.
Where it is
In the House.